Caledonia Mining Corporation (LON:CMCL) CEO Steve Curtis talks to DirectorsTalk about the increase in production by 16% from the previous quarter, how this was managed, increase the dividends and how we should expect production to continue to increase throughout the year.
WH Ireland Analyst Paul Smith said this morning about Caledonia Mining Corporation LON:CMCL “Following on from last Tuesday’s announcement (05/07/2016) to raise the dividend to 5.5c we now fully understand why CEO Steve Curtis said he had ‘confidence that its earnings and cash generation will increase’. Production from the Blanket gold mine in Zimbabwe in Q2 2016 was 12.5koz gold – up 20% from the same quarter in 2015 (10.4koz) and up 16% on Q1 2016 (10.8koz).
The results of the expansion are coming through to the bottom line with ore production increasing from the higher grade ore from below 750 metres – accessed via the No. 6 winze and decline development. This ore was produced from March 2016 and we expect to see its influence increase over the course of the year with gold production rising quarter-on-quarter to reach 14koz by Q4 and a 50koz production target for the whole of 2016.
Caledonia remains an undervalued dividend-paying stock in a rising gold price environment.”